UC-NRLF 


fl?E 


New  York  State  Franchise  Tax 


on 


Manufacturing  and  Mercantile 
Corporations 


Guaranty  Trust  Company 
of  New  York 


New  York  State  Franchise  Tax 

on 

Manufacturing  and  Mercantile 
Corporations 


Chapter  726 
Laws  of  New  York  1917 

Approved 
June  4,  1917 


Guaranty  Trust  Company  of  New  York 

140  Broadway 

Fifth  Avenue  Office 
Fifth  Avenue  and  43d  Street 

London  Office  Paris  Office 

32  Lombard  Street,  E.  C.  Rue  des  Italians  1  &  3 


COPYRIGHT,  1917 
BY  GUARANTY  TRUST  COMPANY  OF  NEW  YORK 


Foreword 

The  tax  imposed  on  manufacturing  and 
mercantile  corporations  by  the  Franchise  Tax 
Law  approved  June  4,  1917,  is  a  tax  of  three 
per  centum  on  the  net  income  of  such  cor- 
porations. 

The  first  taxable  year  under  the  law  is  the 
year  beginning  November  1,  1917.  A  report 
must  be  filed  with  the  State  Tax  Commission, 
by  every  corporation  subject  to  tax,  on  or 
before  the  first  day  of  July  of  each  year, 
and  the  tax  assessed  by  the  Tax  Commission 
in  accordance  with  such  report  is  required  to 
be  paid  on  or  before  January  1,  following. 

All  of  the  principal  features  of  the  law 
have  been  set  forth  in  convenient  form  for 
information  and  reference  in  the  Synopsis 
which  follows.  The  full  text  of  the  law  is  also 
printed  in  this  booklet  for  the  convenience  of 
the  reader. 


36196* 


Synopsis  of  Law 

Imposing  a 

Franchise  Tax  on  Manufacturing 
and  Mercantile  Corporations 

Imposition  of  Tax 

Every  manufacturing  and  mercantile  cor- 
poration organized  or  doing  business  in  the 
State  of  New  York  is  required  to  pay  annually 
in  advance  for  the  year  beginning  Novem- 
ber first,  a  tax  of  three  per  centum  upon 
its  net  income.  The  tax  is  computed  by  the 
State  Tax  Commission  upon  the  basis  of  the 
net  income  for  the  calendar  or  fiscal  year  of 
the  corporation,  next  preceding,  as  shown  by 
the  return  of  the  corporation  filed  with  the 
United  States  Government  under  the  Federal 
Income  Tax  Law*  of  September  8,  1916.  The 
law  became  effective  immediately  upon  its 
passage,  on  June  4,  1917,  and  the  tax  will 
be  assessed  for  the  year  beginning  November 
1,  1917. 


*  Federal  Income  Tax.     Form  1031  Revised. 

[5] 


Corporations  Subject  to  Tax 

All  corporations  engaged  in  manufacturing 
or  mercantile  pursuits,  doing  business  within 
the  State  of  New  York,  are  subject  to  the 
franchise  tax  except  (1)  steam  surface  rail- 
road, canal,  steamboat  and  other  transporta- 
tion corporations  which  are  subject  to  tax 
under  Section  184  of  Chapter  62,  Laws  1909, 
and  (2)  corporations  owning  or  operating 
elevated  railroads  or  surface  railroads  which 
are  not  operated  by  steam,  waterworks  com- 
panies, gas  companies,  and  electric  or  steam 
heating,  lighting  and  power  companies  which 
are  subject  to  tax  under  Sections  185  and  186 
of  Chapter  62,  Laws  1909. 

Manufacturing  and  Mercantile 
Corporations  Defined 

The  law  defines  the  term  "manufacturing 
corporation"  to  mean  a  corporation,  joint- 
stock  company,  or  association  principally 
engaged  in  the  business  of  manufacturing 
tangible  personal  property  for  itself  or  for 
others. 

"Mercantile  corporation"  is  defined  as  a 

[6] 


corporation,  joint-stock  company,  or  associa- 
tion principally  engaged  in  the  business  of 
buying  and  selling  tangible  personal  property 
for  itself  or  for  others. 

EXEMPTION  FROM  OTHER  TAXES 

After  June  4,  1917,  corporations  subject  to 
tax  under  this  provision  are  exempt  from  tax 
on  personal  property,  including  any  fixtures 
attached  to  the  building  for  the  purposes  of 
trade  or  manufacture  and  removable  there- 
from without  material  injury  thereto,  ex- 
cept boilers,  ventilating  apparatus,  eleva- 
tors, gas,  electric  and  water  power  generating 
apparatus  and  shafting.  Likewise,  such  cor- 
porations are  exempt  from  the  Capital  Stock 
Tax  imposed  by  Section  12  of  this  Chapter, 
and  from  the  Franchise  Tax  imposed  by  Sec- 
tion 182  of  this  Chapter.  Corporations  subject 
to  tax  under  this  provision  are  not  relieved, 
however,  from  any  franchise  taxes  due  on  or 
before  January  15,  1917,  or  from  taxes  on 
personal  property  or  capital  stock  assessed  in 
the  year  1916  or  in  the  year  1917  before  the 
passage  of  this  act,  June  4,  1917,  whether 
payable  in  that  year  or  not. 


If  any  manufacturing  or  mercantile  cor- 
poration has  paid  taxes  on  personal  property 
or  capital  stock,  assessed  in  the  year  1917, 
such  corporation  shall  be  entitled  to  credit 
for  the  amount  of  such  taxes  so  paid  on  its 
account  for  taxes  first  assessed  against  it 
under  this  law,  not  exceeding,  however,  the 
amount  of  such  first  assessment. 

Corporation  Report 

Every  corporation  subject  to  tax  is  required 
to  file  with  the  Tax  Commission  of  the  State 
of  New  York  on  or  before  July  1  of  each  year, 
beginning  in  the  year  1917,*  a  report  of  net 
income,  under  oath  of  the  president,  vice- 
president,  secretary,  or  treasurer  of  the  cor- 
poration, in  form  prescribed  by  the  Tax  Com- 
mission. The  report  of  net  income  shall  be  on 
the  basis  of  the  net  income  of  the  corporation 
for  the  preceding  calendar  year,  or,  if  the 
Federal  income  tax  return  is  based  on  the 
fiscal  year  of  the  corporation,  the  report  of 
net  income  for  the  purpose  of  assessment  of 
the  franchise  tax  shall  likewise  be  based  on 

* Time  for  filing  report  for  year  1917  has  been  extended  to 
August  1,  1917. 

[8] 


the  fiscal  year  next  preceding.  The  Tax 
Commission  has  authority,  upon  good  cause 
being  shown,  to  extend  the  time  for  filing 
report. 

Blanks  for  making  reports  will  be  furnished 
by  the  Tax  Commission  but  failure  to  secure 
a  blank  will  not  release  a  corporation  from  the 
obligation  of  filing  a  report. 

Contents  of  Report 

The  report  to  the  Tax  Commission  shall  in- 
clude the  following: 

1.  The  name  and  location  of  the  principal 
place  of  business  of  the    corporation;    the 
State  under  the  laws  of  which  it  is  organized; 
the  date  of  organization;  the  kind  of  business 
transacted. 

2.  The  amount  of  net  income  for  the  pre- 
ceding fiscal  or  the  preceding  calendar  year 
as  shown  in  the  last  return  of  annual  net  in- 
come made  by  the  corporation  to  the  United 
States  Treasury  Department. 

3.  The  average  monthly  value  of  its  real 
property  and  tangible  personal  property  in 
each  city,  village,  or  portion  of  a  town  out- 
side of  a  village  within  the  State,  and  the 

[9] 


average  monthly  value  of  ^all  its  real  property 
and  tangible  personal  property  wherever 
located.  *? 

4.  The  average  montffly  value  of  bills  and 
accounts  receivable  for*»(a)  tangible  personal 
property  sold  from  the  stores  or  stock  of  the 
corporation   within  ^tHe   State,    (b)  tangible 
personal  property  manufactured  or  shipped 
from  within  the  State,  and  (c)  services  per- 
formed within  the  State;  and  £ 

The  average  monthly  total  value  of  bills 
and  accounts  receivable  for  (a)  tangible  per- 
sonal property  sold  from  the  stores  or  stock 
of  the  corporation  within  and  without  the 
State,  (b)  tangible  personal  property  manu- 
factured or  shipped  from  within  the  State 
and  other  States  and  countries,  and  (c)  serv- 
ices performed  both  within  and  without  the 
State. 

5.  (a)  The   average    total    value   for   the 
fiscal  or  calendar  year,  of  the  stock  of  other 
corporations  owned  by  the  corporation,  and 
(b)  the  proportion  of  the  average  value  of  the 
stock  of  such  other  corporations  within  the 
State  of  New  York  as  allocated  pursuant  to 

[10] 


the  provisions  of  the  law.  (See  "Stock 
owned  by  Corporations,"  p.  14). 

6.  If  the  corporation  has  no  real  or  tangible 
personal  property  within  the  State,  the  city 
or  town  within  the  State  in  which  is  located 
the  office  in  which  its  principal  financial  con- 
cerns within  the  State  are  transacted. 

7.  Such  other  facts  as  the  Tax  Commission 
may  require  for  the  purpose  of  computing  the 
tax. 

8.  Any  corporation  may  omit  from  its  re- 
port the  statements  required  by  paragraphs 
3  to  7  above,  both  inclusive,  by  incorporating 
in  its  report  a  consent  to  be  taxed  upon  its 
entire  net  income. 

Supplemental  Report 

In  addition  to  the  above  report,  the  Tax  Com- 
mission may  require  a  supplemental  report 
containing  such  information  and  data  as  may 
be  deemed  necessary  for  the  computation  of 
the  tax. 

Computation  of  Tax 
Base(d  on  the  report  filed  by  the  corporation, 
the  tax  shall  be  computed  as  follows : 

A.  If  the  entire  business  of  the  corporation 

fill 


is  transacted  within  the  State  of  New  York, 
the  tax  imposed  shall  be  based  upon  the  en- 
tire net  income  of  the  corporation  as  returned 
to  the  United  States  Treasury  Department 
for  the  preceding  taxable  year. 

B.  If  the  entire  business  of  the  corporation 
is  not  transacted  within  the  State,  the  tax 
imposed  shall  be  based  upon  that  proportion 
of  the  net  income  of  such  corporation,  which 
the  aggregate  of; 

1.  The  average  monthly  value  of  the  real 
property    and    tangible    personal    property 
within  the  State; 

2.  The  average  monthly  value  of  bills  and 
accounts  receivable  for  (a)  tangible  personal 
property  sold  from  its  stores  or  stocks  within 
the    State,    (b)    tangible   personal   property 
manufactured   or   shipped  from   within  the 
State  and  (c)  services  performed  within  the 
State;  and 

3.  The  proportion  of  the  average  value  of 
the  stocks  of  other  corporations  owned  by  the 
corporation    (See    "Stock    owned    by    Cor- 
porations, "  p.  14) 


bears  to  the  aggregate  of: 

1.  The  average  monthly  value  of  all  the 
real  property  and  tangible  personal  property 
of  the  corporation  wherever  located; 

2.  The  average  total  value  of  bills  and  ac- 
counts receivable  for   (a)   tangible  personal 
property  sold  from  its  stores  or  stocks  within 
and  without  the  State,  (b)  tangible  personal 
property    manufactured    or    shipped    from 
within  this  and  other  States  and  countries, 
and  (c)  for  services  performed  both  within 
and  without  this  State;  and 

3.  The  average  total  value  of  the  stocks  of 
other  corporations  owned  by  the  corporation. 

Tangible  Property 

The  words  "tangible  personal  property" 
mean  corporeal  personal  property,  such  as 
machinery,  tools,  implements,  goods,  wares 
and  merchandise,  and  do  not  include  money, 
deposits  in  banks,  shares  of  stock,  bonds, 
notes,  credits,  or  evidences  of  an  interest  in 
property  and  evidences  of  debt.  Real  prop- 
erty and  tangible  personal  property  shall  be 
taken  at  its  value  where  located. 
[131 


Stock  Owned  by  Corporations 

The  value  of  share  stock  of  another  corpora- 
tion owned  by  a  corporation  subject  to  tax 
shall,  for  the  purpose  of  allocation  of  assets, 
be  apportioned  in  and  out  of  the  state,  in 
accordance  with  the  value  of  the  physical 
property  within  and  without  the  State  rep- 
resenting such  share  stock. 

Audit  and  Statement  of  Tax 

On  or  before  the  first  day  of  November  of 
each  year,  the  Tax  Commission  will  audit 
and  state  the  account  of  each  corporation, 
compute  the  tax  thereon,  and  notify  the  State 
Comptroller  for  the  purpose  of  collection. 

The  notice  to  the  Comptroller  will  indicate 
the  distribution  of  the  tax  collected  to  the 
several  countries  and  subdivisions  thereof  as 
determined  by  the  Tax  Commission. 

Notice  of  Tax 

Notice  of  assessment  of  the  tax  will  be  sent 
to  each  corporation  by  mail,  to  the  post-office 
address  given  in  the  report,  and  the  record  of 
the  mailing  of  such  notice,  kept  by  the  Tax 

[14] 


Commission,  will  be  presumptive  evidence  of 
the  giving  of  the  notice. 

Payment 

Taxes  must  be  paid  to  the  State  Comptroller 
on  or  before  the  first  day  of  January  of  each 
year.  If  taxes  are  not  paid  when  due,  a  pen- 
alty of  ten  per  centum  additional,  and  inter- 
est at  the  rate  of  one  per  centum  per  month, 
will  be  assessed  and  collected.  Unpaid  taxes 
are  a  lien  upon  the  personal  and  real  property 
of  the  corporation  from  the  time  they  are 
due  and  payable. 

Corrections   and   Changes   in   Federal 
Income  Tax  Return 

If  the  return  of  net  income  of  a  corporation 
to  the  United  States  Treasury  Department 
upon  which  the  Federal  Income  Tax  is  based, 
is  changed  or  corrected  by  the  United  States 
Commissioner  of  Internal  Revenue,  the  cor- 
poration is  required  to  file  with  the  State  Tax 
Commission,  within  ten  days  after  notice  of 
the  correction,  a  report  of  net  income  as  cor- 

[151 


reeled  or  changed.  If  it  is  found  that  taxes 
in  excess  of  the  amount  due  by  the  corpora- 
tion have  been  paid,  such  excess  will  be  cred- 
ited to  the  corporation  or  to  any  assignee  of 
the  corporation  from  which  taxes  are  due 
under  this  law.  If  the  corrected  report  shows 
additional  taxes  to  be  due,  the  corporation  is 
required  to  pay  the  amount  assessed  within 
thirty  days  after  notice  of  assessment  from 
the  Tax  Commission. 

Revision  and  Readjustment 

An  application  for  revision  may  be  filed  by  a 
corporation  any  time  within  one  year  from  the 
time  an  account  is  audited  and  stated  by  the 
State  Tax  Commission;  and  if,  upon  hearing, 
it  appears  that  the  account  includes  taxes 
illegally  exacted,  the  tax  Commission  will 
restate  and  adjust  the  account  accordingly. 
The  determination  of  the  Tax  Commission, 
consequent  upon  an  application  for  revision, 
is  subject  to  review  on  certiorari  by  the  Su- 
preme Court  and,  upon  appeal  from  the  de- 
cision of  the  Supreme  Court  by  the  Court  of 
Appeals. 

[161 


Penalty  For  Failure  to  Report  or 
For  False  Return 

Any  corporation  failing  to  file  a  report  as  re- 
quired under  the  Law  is  liable  to  a  fine  not 
exceeding  $5,000.  Any  officer  of  a  corpora- 
tion who  makes  a  fraudulent  return  or  state- 
ment with  intent  to  defeat  or  evade  the  pay- 
ment of  the  tax  is  liable  to  a  fine  not  exceed- 
ing $1,000. 

Estimate  of  Net  Income  by 
Tax   Commission 

If  a  corporation  fails  to  file  a  report  of  net 
income  as  required  under  the  law,  the  Tax 
Commission  is  authorized  to  estimate  the  net 
income  and  the  amount  of  tax  due,  from  such 
information  as  it  may  have  in  its  possession, 
and  state  an  account  of  the  amount  of  tax 
due,  with  penalty  and  interest.  The  cor- 
poration will  be  notified  of  the  assessment  and 
will  be  given  an  opportunity  to  be  heard  in 
respect  thereto. 

Warrant  for  Collection  of  Taxes 

If  the  tax  is  not  paid  within  thirty  days  after 

it  is  due,  and  no  appeal  or  other  proceeding 

[171 


has  been  taken  to  review  the  assessment,  the 
Comptroller  may  issue  a  warrant  to  the 
sheriff  of  the  county  in  which  the  property  of 
the  delinquent  corporation  is  located,  com- 
manding the  sheriff  to  levy  upon  and  sell 
such  property  for  the  payment  of  the  taxes, 
penalty  and  interest  due.  The  warrant  will 
be  returned  and  the  money  collected  there- 
under will  be  paid  to  the  Comptroller  at  the 
time  specified  in  the  warrant,  which  time 
shall  not  be  less  than  sixty  days  from  the  date 
of  the  issue  of  the  warrant.  The  warrant 
will  be  a  lien  upon  the  real  and  personal 
property  of  the  corporation  from  the  time  an 
actual  levy  has  been  made. 

• 

Suit  for  Recovery  of  Taxes  and 
Forfeiture  of  Charter 

Action  in  the  name  of  the  State  may  be 
brought  at  any  time  by  the  Attorney  General 
at  the  instance  of  the  Comptroller,  to  recover 
taxes  due  and  unpaid. 

If  taxes  remain  unpaid  for  a  period  of  one 
year  and  the  Comptroller  is  satisfied  that  the 
failure  to  pay  is  intentional,  action  will  be 

[18] 


brought  by  the  Attorney  General  for  the  for- 
feiture of  the  charter  or  franchise  of  the  cor- 
poration. If  the  failure  to  pay  is  found  by 
the  court  to  have  been  intentional,  judgment 
will  be  rendered  for  the  forfeiture  of  the  char- 
ter, and  for  the  dissolution  of  the  corpora- 
tion, if  it  is  a  domestic  corporation;  or  for  the 
annulment  of  the  franchise  to  do  business  in 
the  State,  if  it  is  a  foreign  corporation. 

Deposit  of  Revenues 

The  Comptroller  is  required  to  deposit  to  his 
credit  all  moneys  collected  under  this  law  in 
such  responsible  banks  or  trust  companies  in 
the  State  as  pay  the  highest  rate  of  interest. 
Any  bank  or  trust  company  receiving  such 
deposit  is  required  to  execute  an  undertaking, 
with  sureties  approved  by  the  Comptroller, 
for  the  safe  keeping  and  prompt  payment  on 
demand  of  all  funds  held  on  deposit.  A 
monthly  statement  of  all  money  received 
from  franchise  taxes  under  the  law  is  made 
by  the  Comptroller  to  the  State  Treasurer 
on  the  first  day  of  each  month. 

On  or  before  the  tenth  day  of  each  month, 
two-thirds  of  all  moneys  collected  during  the 

[19] 


preceding  month  must  be  paid  into  the  gen- 
eral fund  of  the  State  treasury.  The  balance 
shall  be  distributed  and  paid  to  the  treasurers 
of  the  several  counties  of  the  State,  as  pro- 
vided under  the  law. 

Secrecy  of  Reports 

The  disclosure  of  any  report  of  income  or  of 
the  contents  thereof  by  any  official  or  em- 
ployee, except  under  judicial  order,  is  pro- 
hibited. Any  violation  of  this  provision 
will  subject  the  offender  to  a  fine  not  exceed- 
ing one  thousand  dollars,  or  imprisonment 
not  exceeding  one  year,  or  both;  and  if  the 
offender  is  an  employee  of  the  State  he  will 
be  subject  to  dismissal  and  will  be  incapaci- 
tated from  holding  public  office  for  a  period 
of  five  years. 

This  provision  of  the  law  does  not  prohibit 
the  publication  of  statistics  so  classified  as  to 
prevent  the  identification  of  particular  re- 
ports nor  does  it  prohibit  the  publication  of 
lists  of  delinquent  taxpayers.  The  inspection 
of  returns  for  the  purpose  of  bringing  or  de- 
fending suit  is  permitted  to  the  Attorney 
[201 


General  or  other  legal  representatives  of  the 
State.  Reports  shall  be  retained  for  at 
least  three  years. 

Limitation   of  Time 

Limitations  of  time  of  enforcing  a  civil 
remedy,  provided  by  the  code  of  civil  proced- 
ure, do  not  apply  to  any  proceedings  taken 
to  levy,  appraise,  assess,  determine,  or  enforce 
the  collection  of  any  tax  or  penalty  imposed 
by  this  law. 


Law  Imposing  Franchise  Tax 

on 

Manufacturing  and  Mercantile 
Corporations 


Being  Chapter  726,  Laws  of  New  York,  1917, 
Constituting  Article  9 A  of  Chapter  62,  Laws 
of  New  York,  1909 


208.  Definitions. 

209.  Franchise    tax   on    corporations    based    on    net 

income. 

210.  Corporations  exempt  from  article. 

211.  Reports  of  corporations  to  tax  commission. 

212.  Reports  by  corporations  on  basis  of  fiscal  year. 

213.  Reports  to  be  sworn  to;  forms. 

214.  Computation  of  tax. 

215.  Rate  of  tax. 

216.  Penalty  for  failure  to  report. 

217.  Powers  of  tax  commission. 

218.  Revision  and  readjustment  of  accounts  by  tax 

commission. 

219.  Review  or  determination  of  tax  commission  by 

certiorari. 

219-a.  Audit  and  statement  of  tax. 

219-b.  Notice  of  tax. 

219-c.  When  tax  payable. 

219-d.  Corrections  and  changes. 

219-e.  Warrant  for  the  collection  of  taxes. 

219-f.  Action  for  recovery  of  taxes;  forfeiture  of  charter 
by  delinquent  corporations. 

219-g.  Deposit  of  revenues  collected. 

219-h.  Disposition  of  revenues  collected. 

219-i.  Secrecy  required  of  officials;  penalty  for  violation. 

219-j.  Manufacturing  and  mercantile  corporations  ex- 
empt from  personal  property  tax  and  from  the 
provisions  of  sections  twelve,  twenty-seven,  one 
hundred  and  eighty-two  and  one  hundred  and 
ninety-two  of  the  tax  law. 

219-k.  Limitation  of  time. 

[22] 


§  208.  Definitions.  As  used  in  this  article.  1.  The 
term  "corporation"  includes  a  joint-stock  company  or 
association; 

2.  The  words  "tangible  personal  property"  shall    be 
taken  to  mean  corporeal  personal  property,  such  as  machin- 
ery, tools,  implements,  goods,  wares  and  merchandise,  and 
shall  not  be  taken  to  mean  money,  deposits  in  bank,  shares 
of  stock,  bonds,  notes,  credits  or  evidences  of  an  interest 
in  property  and  evidences  of  debt; 

3.  The  term  "manufacturing  corporation"  means  a  cor- 
poration principally  engaged  in  the  business  of  manu- 
facturing tangible  personal  property  for  itself  or  for  others. 

4.  The  term  "mercantile  corporation"  means  a  corpo- 
ration principally  engaged  in  the  business  of  buying  or 
selling  tangible  personal  property  for  itself  or  for  others. 

§  209.  Franchise  tax  on  corporations  based  on  net 
income.  For  the  privilege  of  exercising  its  franchises  in 
this  state  in  a  corporate  or  organized  capacity  every 
domestic  manufacturing  and  every  domestic  mercantile 
corporation,  and  for  the  privilege  of  doing  business  in  this 
state,  every  foreign  manufacturing  and  every  foreign  mer- 
cantile corporation,  except  corporations  specified  in  the 
next  section,  shall  annually  pay  in  advance  for  the  year 
beginning  November  first  next  preceding  an  annual  fran- 
chise tax,  to  be  computed  by  the  tax  commission  upon  the 
basis  of  its  net  income  for  its  fiscal  or  the  calendar  year 
next  preceding,  as  hereinafter  provided,  upon  which  in- 
come such  corporation  is  required  to  pay  a  tax  to  the 
United  States. 

§  210.  Corporations  exempt  from  article.  Corpora- 
tions liable  to  a  tax  under  section  one  hundred  and  eighty- 
four  of  this  chapter,  corporations  owning  or  operating 
elevated  railroads  or  surface  railroads  not  operated  by 
steam,  or  formed  for  supplying  water  or  gas  or  for  electric 
or  steam  heating,  lighting  or  power  purposes  and  liable 
to  a  tax  under  sections  one  hundred  and  eighty-five  and 
one  hundred  and  eighty-six  of  this  chapter,  shall  be  exempt 
from  the  payment  of  the  taxes  prescribed  by  this  article. 

§  211.  Reports  of  corporations  to  tax  commission, 
Every  corporation  taxable  under  this  article  as  well  as 
foreign  corporations  having  officers,  agents  or  representa- 
tives within  the  state  shall  annually  on  or  before  July  first 
transmit  to  the  tax  commission  a  report  in  the  form  pre- 
scribed by  the  tax  commission  specifying:  1.  The  name 

[231 


and  location  of  the  principal  place  of  business  of  such 
corporation,  the  state  under  the  laws  of  which  organized, 
and  the  date  thereof;  the  kind  of  business  transacted. 

2.  The  amount  of  its  net  income  for  its  preceding  fiscal 
or  the  preceding  calendar  year  as  shown  in  the  last  return 
of  annual  net  income  made  by  it  to  the  United  States 
treasury  department. 

3.  The  average  monthly  value  for  the  fiscal  or  calendar 
year  of  its  real  property  and  tangible  personal  property  hi 
each  city,  village  or  portion  of  a  town  outside  of  a  village 
within  the  state,  and  the  average  monthly  value  of  all 
its  real  property  and  tangible  personal  property  wherever 
located. 

4.  The  average  monthly  value  for  the  fiscal  or  calendar 
year  of  bills  and  accounts  receivable  for  (a)  tangible  per- 
sonal property  sold  from  its  stores  or  stocks  within  the 
state,    (b)   tangible  personal  property  manufactured  or 
shipped  from  within  the  state  and  (c)  services  performed 
within  the  state,  and  the  average  monthly  total  value  for 
the  fiscal  year  or  calendar  year  of  bills  and  accounts  re- 
ceivable for  (a)  tangible  personal  property  sold  from  its 
stores  or  stocks  within  and  without  the  state,  (b)  tangible 
personal  property  manufactured  or  shipped  from  within 
the  state  and  other  states  and  countries,  and  (c)  services 
performed  both  within  and  without  the  state. 

5.  The  average  total  value  for  the  fiscal  or  calendar  year 
of  the  stock  of  other  corporations  owned  by  the  corpora- 
tion, and  the  proportion  of  the  average  value  of  the  stock 
of  such  other  corporations  within  the  state  of  New  York, 
as  allocated  pursuant  to  section  two  hundred  and  fourteen 
of  this  chapter. 

6.  If  the  corporation  has  no  real  or  tangible  personal 
property  within  the  state,  the  city,  village  or  portion  of  a 
town  outside  of  a  village  in  the  state  in  which  is  located 
the  office  in  which  its  principal  financial  concerns  within 
the  state  are  transacted. 

7.  Such  other  facts  as  the  tax  commission  may  require 
for  the  purpose  of  making  the  computation  required  by 
this  article. 

8.  Any  corporation  taxable  hereunder  may  omit  from  its 
report  the  statements  required  by  subdivisions  three  to 
seven,  both  inclusive,  by  incorporating  in  its  report  a  con- 
sent to  be  taxed  upon  its  entire  net  income. 

§  212.  Reports   by   corporation  on  basis  of  fiscal  year 


A  corporation  which  reports  to  the  United  States  treasury 
department  on  the  basis  of  its  fiscal  year,  may  report  to 
the  tax  commission  upon  the  same  basis. 

§  213.  Reports  to  be  sworn  to;  forms.  Every  report 
required  by  this  article  shall  have  annexed  thereto  the 
affidavit  of  the  president,  vice-president,  secretary  or  treas- 
urer of  the  corporation  to  the  effect  that  the  statements 
contained  therein  are  true.  Blank  forms  of  the  report 
shall  be  furnished  by  the  tax  commission,  on  application, 
but  failure  to  secure  such  a  blank  shall  not  release  any 
corporation  from  the  obligation  of  making  a  report  herein 
required.  The  commission  may  require  a  further  or  supple- 
mental report  under  this  article  to  contain  further  informa- 
tion and  data  necessary  for  the  computation  of  the  tax 
herein  provided. 

§  214.  Computation  of  tax.  If  the  entire  business  of 
the  corporation  be  transacted  within  the  state,  the  tax 
imposed  by  this  article  shall  be  based  upon  the  entire  net 
income  of  such  corporation  as  returned  to  the  United 
States  treasury  department  for  such  fiscal  or  calendar  year. 

If  the  entire  business  of  such  corporation  be  not  trans- 
acted within  the  state,  the  tax  imposed  by  this  article  shall 
be  based  upon  a  proportion  of  the  net  income,  to  be  de- 
termined in  accordance  with  the  following  rules: 

The  proportion  of  the  net  income  of  the  corporation 
upon  which  the  tax  under  this  article  shall  be  based,  shall 
be  such  portion  of  the  entire  net  income  as  the  aggregate  of : 

1.  The  average  monthly  value  of  the  real  property  and 
tangible  personal  property  within  the  state, 

2.  The  average  monthly  value  of  bills  and  accounts 
receivable  for  (a)  tangible  personal  property  sold  from  its 
stores  or  stocks  within  the  state,   (b)  tangible  personal 
property  manufactured  or  shipped  from  within  the  state 
and  (c)  services  performed  within  the  state, 

3.  The  proportion  of  the  average  value  of  the  stocks  of 
other  corporations  owned  by  the  corporation,  allocated  to 
the  state  as  provided  by  this  section, 

Bears  to  the  aggregate  of 

4.  The  average  monthly  value  of  all  the  real  property 
and  tangible  personal  property  of  the  corporation,  wherever 
located, 

5.  The  average  total  value  of  bills  and  accounts  receiv- 
able for  (a)  tangible  personal  property  sold  from  its  stores 
or  stocks  within  and  without  the  state,  (b)  tangible  personal 

[251 


property  manufactured  or  shipped  from  within  this  and 
other  states  and  countries,  and  (c)  services  performed  both 
within  and  without  this  state. 

6.  The  average  total  value  of  the  stocks  of  other  corpo- 
rations owned  by  the  corporation. 

Real  property  and  tangible  personal  property  shall  be 
taken  at  its  actual  value  where  located.  The  value  of 
share  stock  of  another  corporation  owned  by  a  corporation 
liable  hereunder  shall  for]  purposes  of  allocation  of  assets 
be  apportioned  in  and  out  of  the  state  in  accordance  with 
the  value  of  the  physical  property  in  and  out  of  the  state 
representing  such  share  stock. 

§  215.  Rate  of  tax.  The  tax  imposed  by  this  article 
shall  be  at  the  rate  of  three  per  centum  of  the  net  income 
of  the  corporation  or  portion  thereof  taxable  within  the 
state,  determined  as  provided  by  this  article. 

§  216.  Penalty  for  failure  to  report.  Any  corporation 
which  fails  to  make  any  report  required  by  this  article 
shall  be  liable  to  a  penalty  of  not  more  than  five  thousand 
dollars  to  be  paid  to  the  state,  to  be  collected  in  a  civil 
action,  at  the  instance  of  the  tax  commission;  and  any 
officer  of  any  such  corporation  who  makes  a  fraudulent 
return  or  statement  with  intent  to  defeat  or  evade  the  pay- 
ment of  the  taxes  prescribed  by  this  article  shall  be  liable 
to  a  penalty  of  not  more  than  one  thousand  dollars,  to  be 
collected  in  like  manner.  All  moneys  recovered  as  penal- 
ties, for  failure  to  report  or  for  making  fraudulent  reports 
shall  be  paid  to  the  state  comptroller. 

§  217.  Powers  of  tax  commission.  The  tax  commission 
may  for  good  cause  shown  extend  the  time  within  which 
any  corporation  is  required  to  report  by  this  article.  If 
any  report  required  by  this  article  be  not  made  as  herein 
required,  the  tax  commission  is  authorized  to  make  an 
estimate  of  the  net  income  of  such  corporation  and  of 
the  amount  of  tax  due  under  this  article,  from  any  informa- 
tion in  its  possession,  and  to  order  and  state  an  account 
according  to  such  estimate  for  the  taxes,  penalties  and 
interest  due  the  state  from  such  corporation.  If  the  tax 
imposed  upon  any  corporation  under  this  article  is  based 
upon  an  estimate  as  provided  in  this  section,  the  tax 
commission  shall  notify  such  corporation  of  a  time  and 
place  at  which  opportunity  will  be  given  to  the  corporation 
to  be  heard  in  respect  thereof.  Such  notice  shall  be 
mailed  to  the  post-office  address  of  the  corporation.  All 

[261 


the  authority  and  powers  conferred  on  the  tax  commission 
by  the  provisions  of  section  one  hundred  and  ninety-five 
of  the  tax  law  shall  have  full  force  and  effect  in  respect  of 
corporations  which  may  be  liable  hereunder. 

§  218.  Revision  and  readjustment  of  accounts  by 
tax  commission.  If  an  application  for  revision  be  filed 
with  the  commission  by  a  corporation  against  which  an 
account  is  audited  and  stated  within  one  year  from  the 
time  any  such  account  shall  have  been  audited  and  stated, 
the  commission  shall  grant  a  hearing  thereon  and  if  it  shall 
be  made  to  appear  upon  any  such  hearing  by  evidence 
submitted  to  it  or  otherwise,  that  any  such  account  included 
taxes  or  other  charges  which  could  not  have  been  lawfully 
demanded,  or  that  payment  has  been  illegally  made  or 
exacted  of  any  such  account,  the  commission  shall  resettle 
the  same  according  to  law  and  the  facts,  and  adjust  the 
account  for  taxes  accordingly,  and  shall  send  notice  of  its 
determination  thereon  to  the  corporation  and  state  comp- 
troller forthwith. 

§  219.  Review  of  determination  of  tax  commission 
by  certiorari.  The  determination  of  the  commission 
upon  any  application  made  to  it  by  any  corporation  for 
revision  and  resettlement  of  any  account,  as  prescribed 
in  this  article,  may  be  reviewed  in  the  manner  prescribed 
by  and  subject  to  the  provisions  of  sections  one  hundred 
and  ninety-nine  and  two  hundred  of  this  chapter. 

§  219-a.  Audit  and  statement  of  tax.  On  or  before 
the  first  day  of  November  in  each  year  the  tax  commission 
shall  audit  and  state  the  account  of  each  corporation 
known  to  be  liable  to  a  tax  under  this  article,  for  its  pre- 
ceding fiscal  or  the  preceding  calendar  year,  and  shall 
compute  the  tax  thereon  and  forthwith  notice  the  same  to 
the  state  comptroller  for  collection.  The  tax  commission 
shall  determine  the  portion  of  such  tax  to  be  distributed 
to  the  several  counties  and  the  amounts  to  be  credited  to 
the  several  cities  or  towns  thereof,  when  the  same  is  col- 
lected, and  shall  indicate  such  determination  in  noticing 
such  tax  to  the  state  comptroller.  If  the  corporation  has 
real  property  or  tangible  personal  property  located  in  a 
village,  or  if  it  has  no  real  or  tangible  personal  property  in 
the  state  but  the  office  in  which  its  principal  financial 
concerns  within  the  state  are  transacted  is  located  in  a 
village,  the  tax  commission  shall  indicate  such  facts  to  the 

[•71 


state  comptroller,  with  the  name  of  the  village  in  which 
such  office  or  property  is  located. 

§  219-b.  Notice  of  tax,  Every  report  required  by 
section  two  hundred  and  eleven  of  this  chapter  shall  con- 
tain the  post-office  address  of  the  corporation  and  lines 
or  spaces  upon  which  the  corporation  shall  enter  the 
portion  of  its  net  income  which  it  believes  to  be  the  basis 
upon  which  the  tax  shall  be  imposed  under  this  article, 
and  the  amount  of  such  tax.  Notice  of  tax  assessment 
shall  be  sent  by  mail  to  the  post-office  address  given  in 
the  report,  and  the  record  that  such  notice  has  been  sent 
shall  be  presumptive  evidence  of  the  giving  of  the  notice 
and  such  record  shall  be  preserved  by  the  tax  commission. 

§  219-c.  When  tax  payable.  The  tax  hereby  imposed 
shall  be  paid  to  the  state  comptroller  on  or  before  the  first 
day  of  January  of  each  year.  If  such  tax  be  not  paid  on  or 
before  January  first,  or  in  the  case  of  additional  taxes, 
within  thirty  days  after  the  bill  for  such  additional  tax 
has  been  rendered,  the  corporation  liable  to  such  tax  shall 
pay  to  the  state  comptroller,  in  addition  to  the  amount  of 
such  tax,  ten  per  centum  of  such  amount,  plus  one  per 
centum  for  each  month  the  tax  remains  unpaid.  Each 
such  tax  shall  be  a  lien  upon  and  binding  upon  the  real  and 
personal  property  of  the  corporation  liable  to  pay  the  same 
from  the  time  when  it  is  payable  until  the  same  is  paid 
in  full. 

§  219-d.  Corrections  and  changes.  If  the  amount  of  the 
annual  net  income  of  any  corporation  taxable  under  this 
article  as  returned  to  the  United  States  treasury  depart- 
ment is  changed  or  corrected  by  the  commissioner  of  in- 
ternal revenue  or  other  officer  of  the  United  States  or  other 
competent  authority,  such  corporation,  within  ten  days 
after  receipt  of  notice  of  such  change  or  correction,  shall 
make  return  under  oath  or  affirmation  to  the  tax  commis- 
sion of  such  changed  or  corrected  net  income.  The  tax 
commission  shall  compute  the  taxes  which,  in  view  of  such 
change  or  correction,  would  be  due  from  such  corporation 
for  the  fiscal  or  calendar  year  for  which  such  change  or  cor- 
rection is  made.  If  from  such  computation  it  appear  that 
such  corporation  shall  have  paid  under  this  article  an  ex- 
cess of  tax  for  the  year  for  which  such  computation  is  made, 
the  tax  commission  shall  return  a  statement  of  the  amount 
of  such  excess  to  the  comptroller,  who  shall  credit  such  cor- 
poration with  such  amount.  Such  credit  may  be  assigned 

[28] 


by  the  corporation  in  whose  favor  it  is  allowed  to  a  cor- 
poration liable  to  pay  taxes  under  this  article,  and  the 
assignee  of  the  whole  or  any  part  of  such  credit  on  filing 
with  the  commission  such  assignment  shall  thereupon  be 
entitled  to  credit  upon  the  books  of  the  comptroller  for  the 
amount  thereof  on  the  current  account  for  taxes  of  such 
assignee  in  the  same  way  and  with  the  same  effect  as  though 
the  credit  had  originally  been  allowed  in  favor  of  such  as- 
signee. If  from  such  computation  it  appear  that  an  ad- 
ditional tax  is  due  from  such  corporation  for  such  fiscal  or 
calendar  year,  such  corporation  shall,  within  thirty  days 
after  notice  has  been  given  as  provided  in  section  two 
hundred  and  nineteen-b  of  this  chapter  by  the  tax  com- 
mission, pay  such  additional  tax. 

§  219-e.  Warrant  for  the  collection  of  taxes.  If  the 
tax  imposed  by  this  article  be  not  paid  within  thirty  days 
after  the  same  becomes  due,  unless  an  appeal  or  other  pro- 
ceeding shall  have  been  taken  to  review  the  same,  the 
comptroller  may  issue  a  warrant  under  his  hand  and  official 
seal  directed  to  the  sheriff  of  any  county  of  the  state  com- 
manding him  to  levy  upon  and  sell  the  real  and  personal 
property  of  the  corporation  owning  the  same,  found  within 
his  county,  for  the  payment  of  the  amount  thereof,  with 
the  added  penalties,  interest  and  the  cost  of  executing  the 
warrant,  and  to  return  such  warrant  to  the  comptroller 
and  pay  to  him  the  money  collected  by  virtue  thereof  by  a 
time  to  be  therein  specified,  not  less  than  sixty  days  from 
the  date  of  the  warrant.  Such  warrant  shall  be  a  lien  upon 
and  shall  bind  the  real  and  personal  property  of  the  cor- 
poration against  whom  it  is  issued  from  the  time  an  actual 
levy  shall  be  made  by  virtue  thereof.  The  sheriff  to  whom 
any  such  warrant  shall  be  directed  shall  proceed  upon  the 
same  in  all  respects,  with  like  effect,  and  in  the  same  man- 
ner as  prescribed  by  law  in  respect  to  executions  issued 
against  property  upon  judgments  of  a  court  of  record,  and 
shall  be  entitled  to  the  same  fees  for  his  services  in  execut- 
ing the  warrant,  to  be  collected  in  the  same  manner. 

§  219-f .  Action  for  recovery  of  taxes;  forfeiture  of  char- 
ter by  delinquent  corporations.  Action  may  be  brought  at 
any  time  by  the  attorney-general  at  the  instance  of  the 
comptroller,  in  the  name  of  the  state,  to  recover  the  amount 
of  any  taxes,  penalties  and  interest  due  under  this  article. 
If  such  taxes  be  not  paid  within  one  year  after  the  same  be 
due,  and  the  comptroller  is  satisfied  that  the  failure  to  pay 

[291 


the  same  is  intentional  he  shall  so  report  to  the  attorney- 
general,  who  shall  immediately  bring  an  action  in  the  name 
of  the  people  of  the  state,  for  the  forfeiture  of  the  charter  or 
franchise  of  any  corporation  failing  to  make  such  payment, 
and  if  it  be  found  that  such  failure  was  intentional,  judg- 
ment shall  be  rendered  in  each  action  for  the  forfeiture  of 
such  charter  and  for  its  dissolution  if  a  domestic  corpora- 
tion and  if  a  foreign  corporation  for  the  annulment  of  its 
franchise  to  do  business  in  this  state. 

§  219-g.  Deposit  of  revenues  collected.  The  state 
comptroller  shall  deposit  all  taxes,  interest  and  penalties 
collected  under  this  article  in  responsible  banks,  banking 
houses  or  trust  companies  in  the  state  which  shall  pay 
the  highest  rate  of  interest  to  the  state  for  such  deposit, 
to  the  credit  of  the  state  comptroller  on  account  of  the 
franchise  tax.  And  every  such  bank,  banking  house 
or  trust  company  shall  execute  and  file  in  his  office  an 
undertaking  to  the  state,  in  the  sum,  and  with  such 
sureties,  as  are  required  and  approved  by  the  comptroller, 
for  the  safe  keeping  and  prompt  payment  on  legal  de- 
mand therefor  of  all  such  moneys  held  by  or  on  de- 
posit in  such  bank,  banking  house  or  trust  company, 
with  interest  thereon  on  daily  balances  at  such  rate 
as  the  comptroller  may  fix.  Every  such  undertaking  shall 
have  indorsed  thereon,  or  annexed  thereto,  the  approval 
of  the  attorney-general  as  to  its  form.  The  state  comp- 
troller shall  on  the  first  day  of  each  month  make  a  verified 
return  to  the  state  treasurer  of  all  revenues  received  by  him 
under  this  article  during  the  preceding  month,  stating  by 
whom  and  when  paid,  and  shall  credit  himself  with  all  pay- 
ments made  to  county  treasurers  since  his  last  previous 
return  pursuant  to  section  two  hundred  and  nineteen-h 
of  this*  chapter 

§  219-h.  Disposition  of  revenues  collected.  The  state 
comptroller  shall  on  or  before  the  tenth  day  of  eaeh  month 
pay  into  the  state  treasury  to  the  credit  of  the  general  fund 
two-thirds  of  all  taxes,  interest  and  penalties  received  by 
him  under  this  article  during  the  preceding  month,  as  ap- 
pears from  the  return  made  by  him  to  the  state  treasurer. 
The  balance  of  all  taxes,  interest  and  penalties  collected 
and  received  by  him  under  this  article  from  any  corpora- 
tion, as  appears  from  the  return  made  by  him  to  the  state 
treasurer,  shall,  on  or  before  the  tenth  day  of  April,  July, 
October  and  January,  for  the  quarter  ending  with  the  last 

[301 


day  of  the  preceding  month,  be  distributed  and  paid  by 
him  to  the  treasurers  of  the  several  counties  of  the  state  and 
disposed  of  by  such  treasurers,  in  accordance  with  the  fol- 
lowing rules: 

1.  If  the  corporation  has  no  real  property  or  tangible 
personal  property  within  the  state,  such  payment  shall  be 
made  to  the  county  treasurer  of  the  county  in  which  is 
located  the  office  at  which  its  principal  financial  concerns 
within  the  state  are  transacted 

2.  If  the  corporation  has  real  property  or  tangible  per- 
sonal property,  as  shown  by  its  report  pursuant  to  section 
two  hundred  and  eleven,  in  but  one  city  or  town  of  the 
state,  such  payment  shall  be  made  to  the  county  treasurer 
of  the  county  in  which  such  city  or  town  is  located; 

3.  If  the  corporation  has  real  property  or  tangible  per- 
sonal property  in  more  than  one  city  or  town  of  the  state, 
as  shown  by  its  report  pursuant  to  section  two  hundred  and 
eleven,  such  payment  shall  be  made  to  the  county  treas- 
urers of  the  counties  in  which  such  cities  or  towns  are 
located  in  the  proportion  that  the  average  monthly  value 
of  the  real  property  and  tangible  personal  property  of  such 
corporation  in  the  cities  and  towns  of  such  county  bears  to 
the  average  monthly  value  of  all  its  real  property  and 
tangible  personal  property  within  the  state; 

4.  In  making  such  payment  to  a  county  treasurer,  the 
state  comptroller  shall  indicate  the  portion  thereof  to  be 
credited  to  any  city  or  town  within  the  county  on  account 
of  the  location  therein  of  its  principal  financial  office  or 
property  as  determined  by  the  preceding  subdivisions,  and 
if  such  principal  financial  office  or  property  is  located  in  a 
village  shall  indicate  the  village  in  which  it  is  located;  if 
such  principal  financial  office  or  property  is  located  in  a 
city  or  in  a  town  outside  of  a  village,  the  whole  of  such  por- 
tion shall  be  paid  to  such  city  or  town  as  hereinafter  pro- 
vided ;  if  such  principal  financial  office  or  property  is  located 
in  a  village,  there  shall  be  paid  to  such  village  as  herein- 
after provided  so  much  of  such  portion  credited  to  the 
town  as  the  assessed  valuation  of  the  real  and  personal 
property  in  such  village  or  portion  thereof  in  such  town  as 
appears  by  the  last  preceding  town  assessment-roll  bears 
to  twice  the  total  assessed  valuation  of  the  real  and  personal 
property  in  such  town  as  appears  by  such  assessment-roll; 

5.  As  to  any  county  wholly  included  within  a  city  such 

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payment  shall  be  made  to  the  chamberlain  or  other  chief 
fiscal  officer  of  such  city  and  be  paid  into  the  general  fund 
for  city  purposes; 

6.  As  to  any  county  not  wholly  included  within  a  city 
the  county  treasurer  shall  within  ten  days  after  the  receipt 
thereof  pay  to  the  chief  fiscal  officer  of  a  city  or  to  the  chief 
fiscal  officer  of  a  village  or  to  the  supervisor  of  a  town  the 
portion  of  money  received  by  him  from  the  state  comp- 
troller to  which  such  city,  village  or  town  is  entitled,  which 
shall  be  credited  by  such  officer  to  general  city,  village  or 
town  purposes. 

§  219-i.  Secrecy  required  of  officials;  penalty  for  viola- 
tion. 

1.  Except  in  accordance  with  proper  judicial  order  or  as 
otherwise  provided  by  law,  it  shall  be  unlawful  for  any  tax 
commissioner,  agent,  clerk  or  other  officer  or  employee  to 
divulge  or  make  known  in  any  manner  the  amount  of  in- 
come or  any  particulars  set  forth  or  disclosed  in  any  report 
under  this  article.     Nothing  herein  shall  be  construed  to 
prohibit  the  publication  of  statistics  so  classified  as  to  pre- 
vent the  identification  of  particular  reports  and  the  items 
thereof,  or  the  publication  of  delinquent  lists  showing  the 
names  of  taxpayers  who  have  failed  to  pay  their  taxes  at 
the  time  and  in  the  manner  provided  by  section  two  hun- 
dred and  nineteen-c  together  with  any  relevant  informa- 
tion which  in  the  opinion  of  the  comptroller  may  assist  in 
the  collection  of  such  delinquent  taxes;  or  the  inspection 
by  the  attorney-general  or  other  legal  representatives  of 
the  state  of  the  report  of  any  corporation  which  shall  bring 
action  to  set  aside  or  review  the  tax  based  thereon,  or 
against  whom  an  action  or  proceeding  has  been  instituted 
in  accordance  with  the  provisions  of  sections  two  hundred 
and  sixteen  or  two  hundred  and  nineteen-f  of  this  article. 

Reports  shall  be  preserved  for  three  years,  and  there- 
after until  the  state  tax  commission  orders  them  to  be 
destroyed. 

2.  Any  offense  against  the  foregoing  provision  shall  be 
punished  by  a  fine  not  exceeding  one  thousand  dollars  or 
by  imprisonment  not  exceeding  one  year,  or  both,  at  the 
discretion  of  the  court  and  if  the  offender  be  an  officer  or 
employee  of  the  state  he  shall  be  dismissed  from  office  and 
be  incapable  of  holding  any  public  office  in  this  state  for 
a  period  of  five  years  thereafter. 

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§  219-j.  Manufacturing  and  mercantile  corporations 
exempt  from  personal  property  tax  and  from  the 
provisions  of  sections  twelve,  twenty-seven,  one  hun- 
dred and  eighty-two  and  one  hundred  and  ninety-two 
of  the  tax  law.  After  this  article  takes  effect  manufac- 
turing and  mercantile  corporations  shall  not  be  assessed 
on  any  personal  property  which  for  the  purpose  of  this 
exemption  shall  include  such  machinery  and  equipment 
affixed  to  the  building  as  would  not  pass  between  grantor 
and  grantee  as  a  part  of  the  premises  if  not  specifically 
mentioned  or  referred  to  in  the  deed,  or  as  would,  if  the 
building  were  vacated  or  sold,  or  the  nature  of  the  work 
carried  on  therein  changed,  be  moved,  except  boilers,  ven- 
tilating apparatus,  elevators,  gas,  electric  and  water  power 
generating  apparatus  and  shafting.  After  this  article 
takes  effect  manufacturing  and  mercantile  corporations 
shall  not  be  assessed  or  taxed  upon  their  capital  stock  as 
provided  for  in  section  twelve  of  this  chapter,  nor  shall 
they  be  required  to  pay  the  franchise  tax  imposed  by  sec- 
tion one  hundred  and  eighty-two  of  this  chapter,  nor  to 
make  the  reports  called  for  in  sections  twenty-seven  and 
one  hundred  and  ninety-two  of  this  chapter.  Nothing 
herein  shall  be  construed  to  impair  the  obligation  to  pay 
franchise  taxes  due  on  or  before  the  fifteenth  day  of  Jan- 
uary, nineteen  hundred  and  seventeen,  or  taxes  on  personal 
Eroperty  or  capital  stock  assessed  in  the  year  nineteen 
undred  and  sixteen  or  in  the  year  nineteen  hundred  and 
seventeen  before  this  article  takes  effect,  whether  pay- 
able in  that  year  or  not.  But  if  any  manufacturing 
or  mercantile  corporation  shall  pay  taxes  on  personal  prop- 
erty or  capital  stock  assessed  in  any  tax  district  in  the  year 
nineteen  hundred  and  seventeen,  such  corporation  shall  be 
entitled  to  credit  for  the  amount  of  such  taxes  so  paid  on 
its  account  for  taxes  first  assessed  against  it  under  this 
article  by  the  tax  commission,  not  exceeding,  however,  the 
amount  of  such  first  assessment. 

§  219-k.  Limitation  of  time.  The  provisions  of  the 
code  of  civil  procedure  relative  to  the  limitation  of  time  of 
enforcing  a  civil  remedy  shall  not  apply  to  any  proceeding 
or  action  taken  to  levy,  appraise,  assess,  determine  or  en- 
force the  collection  of  any  tax  or  penalty  prescribed  by  this 
article. 

NOTE:  Sec.  S,  Chapter  726,  Laws,  1917,  provides  that 
this  Act  shall  take  effect  immediately  upon  its  passage. 

[S3] 


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